The General Purposes Committee of Croydon Council met on Tuesday 13 January 2026 to discuss and recommend changes to the Members' Allowances Scheme for the 2026-27 financial year. The committee unanimously agreed to recommend to Full Council an uplift in basic and special responsibility allowances of 3.2% and an annual inflationary increase to expenses, while noting that a wider review of expenses is ongoing.

Members' Allowances Scheme 2026-27

The committee considered the proposed Members' Allowances Scheme for the 2026-27 financial year. Senior Democratic Service and Governance Officer, Adrian May, presented the report, explaining that there is a legal requirement to agree a scheme before the financial year begins. The report included findings from a review of the current scheme, with proposed amendments focusing on expenses.

A key decision was to recommend to Full Council an uplift in members' basic and special responsibility allowances of 3.2% for the financial year 2026-27, backdated from April 2026. This uplift aligns with the independent panel's recommendation and is in line with the figure staff are receiving. The committee also agreed to recommend an annual Consumer Price Index (CPI) increase to expenses, reflecting a 4.1% inflation rate from 2024 to November 2025. This measure aims to address the fact that expense rates had not been reviewed for at least 20 years and were out of date.

The report highlighted that the Independent Panel on the Remuneration of Councillors in London's 2023 report was considered. This report recommended a basic allowance of £15,960, a figure that Croydon's current scheme is noted to be below. The panel also suggested that allowances should be updated annually in line with the Local Government Services Staff (LGSS) pay award.

Arguments for the proposed changes centred on ensuring that councillors can recover costs incurred in their duties without making a profit, and that allowances should not be a barrier for individuals of modest income to serve. The committee acknowledged that a wider review of expenses, including subsistence, hotel costs, and travel, is ongoing and will be brought back at a future meeting.

The committee unanimously agreed to recommend the proposed scheme to Full Council. They also agreed to recommend that the Director of Legal Services be authorised to publicise the scheme and make necessary updates to the council's constitution.

The decision to recommend the uplift and the proposed amendments to the expenses scheme was made with the understanding that the scheme is materially the same as the current one, with the exception of these adjustments. The committee noted that the cost of the proposed increase had already been budgeted for within the council's corporate inflation provision.

The report also mentioned that the dependent carers allowance is uplifted according to the London Living Wage, and this has been reflected in the proposed scheme. The review of expenses has identified that London Borough expense schemes are unique and that there is no single model across London. The total expenses claimed by members in 2023/24 and 2024/25 were £1,355 and £1,905 respectively, with expenses only payable for out-of-borough duties.

The committee also noted that the scheme has no stated frequency for review of expenses, and it is now proposed to be reviewed annually. The report also highlighted that the current scheme's wording could be strengthened to set expectations for members to keep travel, accommodation, and subsistence costs low and pursue best value.

The meeting concluded with the committee agreeing to recommend the proposed scheme to Full Council for final approval.